General

Re: the value of gold

sthomper — Fri, 13 Nov 2009 21:20:07 GMT

does gold operate any differently than any other commodity these days...since its money usage is negligible?

if gold was money, raw mined gold would be priced in moneyd-gold...which used to be the dollar (1/20 oz.).

i believe the dollar doesnt mean that now.

if a new mine was found that yielded gold from the earth easier than currently operating mines (geological factors, etc) demand could increase but price remain nearly stable??

Re: the value of gold

DanielMuff — Fri, 13 Nov 2009 19:20:53 GMT

jeff fogel:

So the main engine of the recent run up is central banks everywhere printing money? Other things, such as demand and supply being pretty much as they always have been?

Maybe it's those "animal spirits" that can't make up their mind.

Re: the value of gold

jeff fogel — Fri, 13 Nov 2009 19:10:53 GMT

So the main engine of the recent run up is central banks everywhere printing money? Other things, such as demand and supply being pretty much as they always have been?

Re: the value of gold

Bogart — Fri, 13 Nov 2009 03:46:45 GMT

The left out the "All other things being equal part" or from college physics: "All other effects being minor." Clearly the run up in the price of gold recently is a good example of the "All other effects being minor." as world central banks have literally entered trillions of dollars in new currency.

Re: the value of gold

nirgrahamUK — Fri, 13 Nov 2009 02:16:03 GMT

jeff fogel:
Am I missing something?

I don't think so....

the value of gold

jeff fogel — Fri, 13 Nov 2009 02:02:55 GMT

I've heard it said many times that gold doesn't really increase in value. It's the dollar decreasing in value in relation to the gold. Well I'm sure that's true to a great extent but it doesn't explain the amount gold fluctuates based on demand. If demand increases, gold must increase in price like any commodity. Am I missing something?